Perspectives on In-Vehicle Infotainment Systems and Telematics

How will in-vehicle infotainment systems and telematics figure in consumers’ vehicle buying decisions?

Overview

Accenture has completed global studies to identify the most important trends shaping mobility and in-vehicle infotainment (IVI) in the automotive industry and around the world. Our research found three main trends will directly contribute to the growth of IVI and telematic systems: eco-efficiency, security and safety and comfort. Read more about these key findings and how OEMS and Tier One Suppliers can utilize these trends to identify and strategically position themselves for the next phase of growth.

Key trends shaping the automotive Landscape
What are the most important trends shaping mobility around the world and in the automotive industry? And how can automotive manufacturers position themselves now to profit from these trends, particularly around IVI systems, telematics and embedded software?

Accenture recently concluded several studies to address these questions and provide insights into how IVI and telematics systems can be used to improve competitive positions in the coming years. We define IVI as a set of solutions and applications for vehicles that address various customer priorities such as entertainment, safety, maintenance, communication, and navigation. This paper summarizes key findings of the research.

The most important trends that will affect automotive manufacturers in IVI and telematics over the next 20 years include:

Urbanization—
By 2015, 40 percent of the world’s people will live in cities with populations of more than 1 million and 17 percent will live in megacities with more than 5 million. Drivers will need in-vehicle systems to help them more readily navigate congested roadways, and will use their cars as information centers that can recommend and direct them to restaurants and other destinations.

Climate impact and policy—
An additional 1.9 million tons of carbon dioxide will be emitted annually in developing countries thanks to the rise in individual ownership, assuming there are no changes in global policy. This trend will likely accelerate the adoption of electric vehicles, through government subsidies for the vehicles themselves and through development of charging infrastructure. To be sure, cars will still be the dominant form of transportation for individual passengers. The strongest regions for growth will come from emerging markets, including China, India and Russia. These regions will account for 50 percent of new car sales, compared with today’s 30 percent. There will also be growth in two- and three-wheel vehicles, along with an increase in bus and rail capacity.

Over the next 20 years, Accenture studies found, the next wave of enhanced and connected in-vehicle services will not provide one killer application, but rather multiple big-ticket services. In the future the open platform will allow access to several new opportunities and consumers will be able to download the applications they need and want directly from their vehicle.

We see major trends for both embedded and standalone in-vehicle solutions. Automotive manufacturers will need to catch up with other types of companies that compete in these markets. Although most automotive manufacturers have capabilities in info-mobility, such as navigation, few have fully developed commerce capabilities. And they have been slow to create new generations of IVI applications in areas like safety, commerce, communications and entertainment.

In the European IVI marketplace, Accenture found that BMW and Mercedes represent the biggest players, while Toyota and Volkswagen are expected to grow rapidly in the next few years. In North America, Ford is viewed as a market leader, with the Ford Sync and Ford myTouch IVI devices generating a good deal of favorable buzz.

Demand for IVI and telematics is accelerating, as the Accenture studies make clear. Car manufacturers have an opportunity now to ramp up their capabilities to achieve competitive differentiation. They and their suppliers need to start building strategic partnerships that will lead to distinctive capabilities. To speed the process, some may want to take a managed approach to IVI, allowing them fast entry into key areas. The three areas that merit greatest consideration are safety, eco-efficiency and entertainment.